County Will Grapple With Ways To Lure More High-paying Jobs

The Fund To Provide Job-growth Incentives -- "The Icing On The Cake" -- To Expanding Or Relocating Businesses Is Low.

January 15, 2004|By Monica Scott, Sentinel Staff Writer

TAVARES -- Business expansions and relocations that have spurred jobs and bolstered tax coffers also have drained the county's job-growth investment fund.

Three months into the fiscal year, $300,000 used to provide incentives for businesses to create high-paying jobs is low, but requests keep rolling in. The activity during the past year is unprecedented for the fund.

County commissioners must decide whether to add money to the fund, take company requests case by case, or not fund any more projects until the allotment next fiscal year, which starts Oct. 1. The county puts $200,000 annually into the fund but recently got $100,000 back from projects that did not create as many jobs as expected. Two companies -- Bailey Industries and C&C Pumping -- await approval for a total of $243,000. But only one can be funded through the existing fund, which is at $135,760.

"The program has a wonderful track record that proves appropriate use of incentives works," said Carl Lunderstadt, chairman of the Industrial Development Authority, which advises the county on the fund. "It brings tremendous returns to the county. The money invested keeps growing and growing."

Lunderstadt said he thinks the county should add money to the fund to carry it through the new fiscal year.

The fund generally provides $2,500 per job for manufacturing companies and $2,000 per job for distribution facilities, provided they pay 115 percent above the average county salary, or $14.34 per hour, as of this year.

County Commissioner Welton Cadwell said the commission might lean toward awards on a case-by-case basis rather than putting more money in the fund this fiscal year.

"We are certainly not going to turn anybody away," said Cadwell, who is on the Industrial Development Authority board.

County Commissioner Catherine Hanson said she thinks there needs to be a workshop to determine how to continue funding projects.

"I think it's extremely important to the county to grow business and industry because we have been growing out of proportion -- growing more residentially," Hanson said.

C&C Pumping, a concrete-pumping company that relocated from Altamonte Springs and expanded at the Christopher C. Ford Industrial Park in Groveland, received about $60,000 and has nearly doubled its staff since October to 62. The jobs pay an average of $14.82 per hour. The company is now seeking $118,000.

"When relocating and building a facility, you always have add-on costs, so any incentives are helpful,'' said Leslie Holdorf, president and co-owner of C&C Pumping. "I feel like we're helping strengthen the economy with jobs and people buying homes here.''

Holdorf said the company was attracted to the area because of the cheaper land, access to major thoroughfares and the financial incentives. She also said Lake was an area of growth.

Leesburg's Bailey Industries, a company that designs and distributes houseware, is seeking $125,000 for the 50 new employees it plans to add to a staff of 261.

Derieth Sutton, Lake County business-development director for the Metro-Orlando Economic Development Commission, said financial incentives are important but usually are not going to make or break a deal.

"It's [incentives] the icing on the cake for a lot of companies because it's dollars that they can use to offset such cost as impact fees or building a new facility,'' Sutton said. "The community's quality of life, access to thoroughfares, worker availability and land value are some other factors.''

William McDermott, director of economic development for Seminole County, agreed that the deal generally does not turn on numbers but is an extra edge. He said Seminole's incentive program is similar to Lake's, offering $200,000 annually.

Tom Patton, director of tourism and economic development for Polk County, said Polk is looking at establishing a formal incentives program because it is a competitive market for business and industry. He said Polk offers some aid.

"We are marketing the program more aggressively and effectively,'' said Greg Mihalic, county economic and tourism director, of the strong interest.

This year, funds have gone to a host of companies, including an irrigation-system manufacturer, sports-fitness corporation and a bus-refurbishing company.

Since its inception in 1995, the fund has awarded more than $3.2 million to more than four dozen companies for more than 1,300 jobs. The companies have made more than a $98 million capital investment.